You're likely here seeking detailed information about eToro's regulation and licensing. Fortunately, I've conducted thorough research to provide you with comprehensive insights into this multi-regulated broker and its various entities.
51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
eToro stands as a multi-regulated broker, adhering to the strict guidelines set by several top-tier financial authorities. Within the eToro group, there are multiple licensed entities, each serving clients from over 140 countries.
🏛 What's with the regulations of several authorities?
Each of these entities holds a license from a respective financial authority and is obligated to follow specific regulatory standards. These standards can differ among regulators, impacting the compliance requirements for each eToro company.
Due to these varying regulatory frameworks, eToro's companies may offer different services and products depending on the client's country of jurisdiction and the specific regulated entity operating in that region. This ensures that eToro aligns with local regulatory requirements while catering to the diverse needs of its global clientele.
So which regulatory bodies regulate eToro? Below is a comprehensive list of the financial authorities that have granted them licenses and the complete eToro info such as the country, operating company and license:
If you're a registered user, you might be curious and ask, "Which regulation is my account under eToro?" For those not yet registered, here's a brief guide:
During the sign-up process on eToro, you'll encounter the Terms and Conditions. It's crucial to read and agree to these terms to proceed with account creation. Within these Terms and Conditions, you'll find information about the specific eToro entity managing your account, including the applicable regulatory authority.
As an existing user, I discovered which regulatory body governs my eToro account through a simple process:
In my experience, for instance, my account fell under "eToro (UK) Ltd, a Financial Services Company authorised and regulated by the Financial Conduct Authority (FCA) under the license FRN 583263." This method should help you easily identify the regulatory framework applicable to your eToro account.
eToro, adhering to financial service regulations, mandates the verification of all trading accounts. This process involves submitting specific documents and completing certain actions. Typically, eToro requires:
As regulated entities, eToro Europe and eToro UK are obligated to implement stringent measures against money laundering, in line with the directives of financial authorities. This necessitates thorough account verification and other preventive actions.
💸 AML Essentials - What You Should Know
To combat money laundering and other illicit financial activities, countries like the UK and Cyprus have enacted legislation in accordance with international standards, including the European Union Directives.
In compliance with the European Capital Requirements Regulation, eToro Europe and eToro UK are required to maintain separate funds and consistently meet minimum capital ratios. As investment firms, they must employ strategies to ensure adequate internal capital, which is regularly reviewed.
eToro ensures the protection of its traders' funds by keeping client assets (excluding margin) separate from the company’s own assets. This segregation is both internally and externally audited and helps distinguish client investments from eToro’s operational capital.
In my opinion: The segregation of funds is a significant green flag, indicating the company's commitment to protecting investors’ funds. It also ensures that these assets are not misappropriated by partner brokerage firms. I believe this approach is both efficient and transparent, playing a crucial role in safeguarding the safety of investors’ funds.
This concludes my comprehensive exploration of eToro's regulations and licenses. I trust that the insights shared here have been informative in understanding the regulatory framework and specifics of eToro. The key takeaway is that eToro strictly adheres to the regulations set by the FCA, CySEC, and ASIC, demonstrating their commitment to investor protection.
eToro is a multi-asset platform which offers both investing in stocks, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
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